Repayment of Corona aid: One in four companies affected - financial experts warn of the threat of repayments.

Repayment of Corona aid: One in four companies affected - financial experts warn of the threat of repayments.

According to a report by www.zeit.de, a preliminary balance sheet from the Ministry of Economic Affairs shows that almost every fourth company that received government aid during the Corona crisis has to pay back part of it. The repayments result from the final settlement of 338,000 applications, with around 40 percent of companies also receiving additional payments.

The Corona bridging aid was paid out to companies whose existence was threatened and with large declines in sales, but the payment was linked to a final settlement. Reclaims can arise if the actual decline in sales was less than expected when the application was submitted. According to the Ministry of Economic Affairs, 13.1 billion euros in emergency aid and 63.3 billion euros were paid out for various programs.

This development may create uncertainty in the market as those companies that need to make repayments may have to reconsider their financial position. An increased repayment rate could mean businesses have less financial support than expected, which could impact their long-term financial stability.

In addition, additional payments to companies that receive them can lead to short-term relief in the financial situation. An increase in back payments from the federal government could also indicate that the state aid programs did not fully meet certain criteria. Overall, this could lead to a reassessment of government aid programs and possibly to changes in their design.